VAT registered UK business provides web hosting fees and website development work to businesses in the EU. I understand that despite these being classed as digital services, they will fall under the place of supply being that of the customer and therefore not subject to UK VAT. A couple of follow up questions to this though assuming it is correct:
1) Does it matter if the business in the EU is not VAT registered/
2) If not, what is required to prove you are dealing with a business?
3) Am I missing anything here, i.e VAT reg is not required in the EU for any reason is it? I understand if supply of digital services is to consumers that registration for the non-union VAT MOSS would be required.
Thanks in advance
Replies (2)
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You need to read 741A
6.3 has info ref evidence other party is in business
https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a
Digital services rules are irrelevant if B2B supply. It is treated the same as other B2B supplies outside the UK.
The business does not need to be VAT registered but they should be able to provide evidence to supply that you are not supplying a private consumer. A certificate of incorporation should be suffice.